Strategic Energy Management: A Three Tiered Approach

1
Strategic Energy Management A Three
Tiered Approach

• Randy Gaines, C.E.O.E.
• White Lodging Services
• AHMA Annual Conference and Lodging Expo
• April 5, 2001

2
Portfolio

• 69 Hotels in eight states (IN, IL, TX, FL, CO,
  MI, UT, KY)
• 8,000 Rooms
• Full Service and Limited Service brands

3
Energy Management Mission Statement

• To increase profits, prevent pollution, and
  enhance the indoor environment for guests and
  employees through cost-effective strategic
  energy management.

4
Growth Since First Opening
Number of Hotels
Increase of 4.5 MSF to date
5
Energy Management Strategy
Tier III Asset Optimization
Tier II Commodity Purchasing
Tier I Utility Data Management
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Energy Management Strategy
Tier I Utility Data Management
7
Utility Data Management
Gas Bills
TEG Process Bills
Enter Usage Cost Information
Electric Bills
Audit Validate Bill
TEG Database
Performance Reports
Resolve Billing Discrepancies
8
Utility Data Management

• Perform Detailed Analysis of Each Utility Account
• Analyze utility rate, implement most inexpensive
  option
• Investigate all findings
• faulty meters
• missing water meters
• late fees
• double billing

9
Utility Data Management

• Utility Errors and Faulty Equipment
• Faulty natural gas meter identified - recovered
  overpayment of 15,482!
• Faulty water meter identified - recovered
  overpayment of 32,540!
• Hotel billed for two water accounts, one of
  which was neighboring hotel- recovered
  overpayment of 28,230!

10
Utility Data Management

• Utility Errors and Faulty Equipment
• Identified oversized water meter - downsized
  water meter and implemented lower rate resulting
  in
  annual savings of 5,600!
• Identified gradual upward trend in water
  consumption and leak in
  irrigation system
  camouflaged by clay soil - secured utility
  refund of 5,200 due
  to sewer exemption
• These savings alone total over 100,000!

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Energy Management Strategy
Tier II Commodity Purchasing
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Commodity Purchasing

• Monitor State Utility Commissions
• Monitor Federal Legislation
• Interact With Utilities To Keep Abreast of Pilot
  Programs
• Interact with Suppliers To Keep Abreast of Pilot
  Programs

State Utility Commission
Federal Regulators
TEG
Electric Utility
Natural Gas Utility
Suppliers
13
Commodity Purchasing
Contract

• Negotiate Contract Terms Conditions
• Process All Required Utility Forms Contracts

• Monitor Energy Futures Market

• Leverage Purchasing Power of White Lodging and
  TEG

14
Energy Management Strategy
Tier III Asset Optimization
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Asset Optimization
Prioritize
Utility Data Management
Asset Optimization Activities
Data management enables the effective
prioritization and validation of asset
optimization activities

• High Impact Items
• Daily Meter Readings
• Peak Control
• Equipment / Technology Changes
• Occupancy Sensors
• Ozone Laundry
• Lighting
• Energy-efficient Electronics
• Energy-efficient Appliances

• Quarterly Reports
• Property Rankings
• PAR and POR Analysis
• Cost per Unit of Commodity

Validate
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2001 Performance Metrics
Utility Comparison
Electric
Hotel X
Hotel Y
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2001 Performance Metrics
Utility Comparison
Electric
Natural Gas
Hotel X
Hotel X
Hotel Y
Hotel Y
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2001 Performance Metrics
Usage and cost will be analyzed on a per
available room, per occupied room, and per square
foot basis.
Usage
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2001 Performance Metrics
Usage and cost will be analyzed on a per
available room, per occupied room, and per square
foot basis.
Usage
Cost
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High Impact Items

• Lighting
• All lights off when unoccupied
• TCP 30 watt Bulb with 36 watt Ballast
• Exterior lighting, profiler system or photocell
  properly placed
• Sport courts and storage rooms, equipped with
  timers for auto-shutoff
• PTAC
• Units off when 55 - 85 F outside
• Settings for unoccupied rooms determined by
  Maintenance Manager daily
• Filters cleaned quarterly
• Power wash coils every two years
• Associates do not pre-cool or pre-heat rooms

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High Impact Items

• Water Heater
• Remove all deposits from tank
• Burner maintained with bright blue flame
• Ensure no airflow is restricted
• Verify water temperature is 110 degrees at the
  furthest room
• Laundry
• Only full loads
• Done in off peak hours
• Keep drier lint screens clean - check after every
  load

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High Impact Items

• In Room Water Equipment
• 2.5 gallon per minute shower heads installed
• Faucet arreators installed, 1.5 gallon per minute
• 1.6 gallon per flush toilets installed when
  replacement occurs
• Dye test toilets annually to ensure no water
  leaks
• Evening Energy Walks
• Night Auditor
• Self Audit
• Energy Absolutes

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Daily Meter Readings

• Daily meter reading log
• Maintenance manager to complete each day
• Readings to be taken at same time each day
• Computerized monthly meter reading spreadsheet
• GM will have daily information transferred to
  spreadsheet
• Daily occupancy column will also be updated
• Monthly reporting
• Monthly spread sheets forwarded to Regional
  Directors of Housekeeping and Maintenance
• Copies will be kept at each property in the Life
  Safety Manual under new Energy Usage tab

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Energy Committees

• Line item on accountability meetings, once a month

• Discuss
• Findings of investigations and reports
• Successes, Projections
• Opportunities for employee involvement

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Peak Control Strategies

• Peak usage is 700 to 900 a.m., 600 to 1000
  p.m.
• Key areas to control peak
• No laundry before 900 am
• Ensure PTACS for all unoccupied rooms are shut
  off during peak times
• Common area thermostats are set back, upgrade to
  electronic thermostats for auto set back
  capability
• In kitchen area, shut off any unneeded electrical
  equipment during peak hours
• Educate staff and get them involved in peak
  control

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Demand Curve October, FFI
Peak Day, Thursday October 5, 2000 determines
bill for the entire month
Average Weekday
Average Weekend
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Usage and Demand, FFI
December 00
October 00
November 00
January 01
February 01
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Accomplishments

• Implemented strategic energy management plan
  across portfolio
• Achieved annual savings of 100,000 while
  increasing portfolio by 31

• Leveraged energy performance efforts through
  energy alliances
• Involved staff in education, training, and
  implementation

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Challenges

• Maintaining energy savings during growth
• Ensuring communication between housekeeping and
  engineering staff

• Receiving buy-in from general manager and staff